- ZachXBT, a respected blockchain investigator, faced a defamation lawsuit but received overwhelming support from the crypto community, raising over $1 million for his legal defense.
- ZachXBT accused Jeffrey Huang of embezzling Ethereum based on on-chain data, leading to a lawsuit against him.
- The wallet associated with ZachXBT’s legal defense amassed significant digital assets, including stablecoins and tokens from various exchanges, with contributions ranging from small amounts to substantial sums.
On June 17, the highly regarded investigator in the blockchain field, ZachXBT, declared a defamation lawsuit associated with him. However, after days following the public reveal, Zach experienced an outpouring of support has emerged from the cryptocurrency community. The volunteer crypto detective has garnered more than $1 million in donations, as individuals rally together to contribute towards his legal defense fund.
On Friday, ZachXBT took to Twitter to share a digital wallet address along with his reflections on the lawsuit initiated by Jeffrey Huang, a Taiwanese-American musician and tech entrepreneur. He described the legal battle as concerning and likened it to a “David and Goliath story.”
Huang, who is also recognized by the online pseudonym Machi Big Brother, has filed a lawsuit against ZachXBT regarding an article published a year ago.
In the article, ZachXBT alleges that Huang was involved in the misappropriation of millions of dollars worth of Ethereum from Formosa Financial, a now-defunct cryptocurrency treasury management platform co-founded by Huang. Notably, ZachXBT substantiated these allegations with on-chain data.
My understanding is that Machi is very wealthy. I am not. He is using his money to try [to] silence me.
ZachXBT
ZachXBT expressed concerns that his legal defense expenses could surpass $1 million. However, within a day of sharing the wallet address, the accumulated digital assets in the wallet, primarily stablecoins, have already surpassed that fundraising goal. This information is reported by Nansen Portfolio.
At present, the wallet associated with ZachXBT’s legal defense has amassed a substantial amount of digital assets. As of now, the wallet holds more than $664,000 worth of the stablecoin USDC, nearly $379,000 worth of Tether, as well as other tokens including Ethereum valued at over $284,000, and Polygon amounting to more than $90,000. Please note that these figures are accurate as of the time of writing.
The collective effort to support ZachXBT’s legal defense has attracted contributions from users across various cryptocurrency exchanges. According to Nansen data, funds have been received in ZachXBT’s wallet from wallets associated with exchanges including Binance, Bitfinex, Bybit, Coinbase, Kraken, OKX, Uniswap, and 1inch.
While a significant portion of the donations consists of numerous contributions worth less than $100, there are several transactions within the range of $10,000 to $50,000. Members from all corners of the crypto industry are actively chipping in to show their support.
Even amidst the ongoing legal battle faced by Binance and its CEO, Cangpeng Zhao (CZ), they have shown support for ZachXBT’s cause. CZ made a donation and encouraged ZachXBT to persevere in his fight, emphasizing the importance of transparency in the industry. This gesture from CZ comes at a time when Binance and CZ are dealing with a prominent lawsuit filed by the Securities and Exchange Commission (SEC).
In addition to other notable contributors, Justin Sun, the founder of Tron and an advisor to Huobi, made a donation of $10,000 worth of the stablecoin True USD to ZachXBT. In a translated tweet, Sun acknowledged the valuable educational role played by ZachXBT in the crypto community, thereby expressing support for his cause.
n his tweet, ZachXBT made a commitment that any remaining funds donated for his legal defense would be returned to the contributors on a pro-rata basis. This means that individuals would receive a proportionate amount based on their contribution in relation to the total funds received.
As the lawsuit against ZachXBT progresses, the Web3 community demonstrates its readiness to support him. They willingly send their hard-earned assets to someone who has dedicated their time to making a positive impact in the crypto space, even though ZachXBT had previously asked for little in return. This exemplifies the solidarity and appreciation within the community for those who contribute selflessly.
